Energy and hydropower | NVE with new price estimates: – It will be three times more expensive than hydropower

Energy and hydropower |  NVE with new price estimates: – It will be three times more expensive than hydropower

– The possibility that this is the beginning of a new industrial era for Norway is high, there is no doubt about it, Energy Minister Terje Aasland (AFP) tells NTB.

He is not concerned by recent estimates by analytics firm Afry for the Norwegian Water and Energy Directorate (NVE).

These figures are part of the basis for the government's proposal for a support scheme for floating offshore wind, which will be sent for consultation on Friday.

– I think floating offshore wind will be profitable. It will be important for the industry in Norway to move forward. If we succeed at home, we will succeed abroad, says Aasland.

billion in subsidies

The new estimates apply to the Vestavind B and Vestavind F areas, which also include the first floating offshore wind farm to be lit, Utsira Nord.

It is estimated that the state will have to contribute subsidies of between NOK 12 and NOK 36.5 billion to develop a floating offshore wind farm producing 506 megawatts of electricity in the regions.

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The estimates are uncertain, and the government is basing them on a baseline scenario where support of NOK 24.7 billion will be needed.

– Companies must compete on technology and solutions, whether in terms of price, quality, environment or climate. “We believe that a model where competition for state aid is conducted after maturity will best contribute to the development of floating offshore wind and facilitate the least amount of state aid possible,” says Aasland.

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The government had previously said it planned to light up Utsira Nord with three 500 MW zones, with the best two projects receiving state support. With such a solution, the cost of developing 1,000 MW of floating offshore wind would be around NOK 50 billion.

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Aasland believes costs should come down

The total lifetime cost of electricity (LCOE) was calculated as NOK 1.34 per kWh. Previous NVE Estimates For floating estimates it was NOK 1.17/kWh.

In comparison, hydropower costs about 40 euros per kilowatt hour.

The Minister of Energy points out that this is pioneering work and that no similar projects have ever been built.

“I think we can cut costs significantly in a short time,” he says.

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All the power goes to Norway

One of the goals of the initiative is to facilitate Norwegian industry, especially the supplier industry, to get new feet to stand on.

“We want to be an early adopter of the technology that the world will demand,” says Aasland.

He's clearly committed, and doesn't hide the fact that he's really excited about the flowing sea breeze.

– This is very fun, very exciting, he says.

– Every kilowatt-hour produced from this area will go to the Norwegian energy system. It gives us more renewable energy and the opportunity to reduce greenhouse gas emissions.

Note! In parallel with floating offshore wind, the government is working with offshore wind turbines fixed to the seabed. The first project, Sørlige Nordsjø II, was awarded in March.

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(© NTB)

Hanisi Anenih

Hanisi Anenih

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